Most people who start up in business do so because they have a good business idea, and the enterprise and commitment to see it through, however, these people are usually not experts in the legal, financial, and fiscal aspects of running a business.
Indeed, these matters can often seem daunting, and even off-putting, to the budding entrepreneur. The good news is that you do not need to be an expert in these fields to succeed in business. All you need is the support of a team of trained experts.
That’s where we fit in. Bring us your business ideas and we’ll help you to evaluate them in a constructive and realistic manner.
We can also help you:
- Decide on the most suitable structure for your business – sole trader, partnership, or limited company
- Prepare a business plan, cashflow projections, budgets, and trading forecasts
- Assess your finance requirements, advise on the best sources of finance, and draw up the necessary proposals
- Establish a good working relationship with your bank
- Complete any registration procedures with Companies House, Inland Revenue, or Customs and Excise
- Deal with company secretarial issues
- Set up a recording system for your internal use and for complying with statutory requirements
Every year, thousands of people decide to set up their own business. Here are some of the practical points which require consideration before trading begins:
Selecting a legal entity
The entity you choose will impact on the way you are protected by law, and affected by taxation rules and regulations. The four (4) main entities are:
- Sole trader
- Limited company
- Limited liability partnerships
Registering with the Tax Authorities
Every business must comply with tax and information filing requirements and failing to do so may result in problems and penalties.
If you have decided to work for yourself, then you must notify HMRC of the new existence within 3 months of commencement of business.
If you have set up a company, and has any taxable income or profits, then the Company is liable to pay Corporation Tax.
Businesses will need to register for VAT purposes if taxable supplies exceed the registration limit.
If you are going to have employees then you will have to run a Pay As You Earn scheme. Every employee will also require an employment contract.
Construction Building Scheme (CIS):
If your business works in the construction industry or does construction related work then it may need to register with HM Revenue & Customs (HMRC) as either a contractor or a subcontractor under CIS.
Financing For Your Business
In most cases you will need to obtain outside capital for the initial expenses of your business.
In order to determine your capital requirements, a business plan will need to be formulated including estimates of future sales, expenses, cash flows etc. As well as aiding the development of your own business, a potential lender will want to know these details to understand your proposal and see how you plan to utilise the money.
Your new venture may be eligible to receive a grant. There are many different schemes in operation by various awarding bodies.